Crude prices fell more than two percent in Asia today, with sentiment hit by Standard & Poor's decision last week to cut Washington's top-notch credit rating for the first time, analysts said.
In morning trade, New York's main contract light sweet crude for September delivery tumbled USD 2.33, or 2.68%, to USD 84.55 a barrel, from its closing price on Friday.
Brent North Sea crude for September delivery sank USD 2.91, or 2.66%, to USD 106.46.
"What we do feel is the re-rating of the debt in the US has knocked confidence out of the market," said Jonathan Barratt, Sydney-based managing director with Commodity Broking Services.
"With crude where it is at the moment, that confidence will affect demand or expectations of demand in the market," he told AFP.
The United States, the world's largest oil consumer, saw its top-flight AAA credit rating downgraded for the first time when S&P on Friday cut it to AA+ with a negative outlook on concerns over its debt.
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